Connected Agriculture Market - Growth, Trends, and Forecast (2019 - 2024)

The Connected Agriculture Market can be segmented by Component (Solution (Network Management, Agriculture Asset Management, Supervisory Control and Data Acquisition), Service), Application (Smart Logistics, Smart Irrigation, Farming Planning and Management), and Geography.

Market Snapshot

Connected Agri summary
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

17.08 %

Key Players:

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Market Overview

The global connected agriculture market has been valued at USD 2.86 billion in 2018 and is expected to grow at a CAGR of 17.08 % over the forecast period 2019 - 2024 to reach a market value of USD 5.97 billion by 2024. According to United States Department of Agriculture, the average farm size in 2017 was 444 acres which just takes time to monitor and check on. Also, the world needs to increase food production by almost 50% by 2050 to feed a population of nine billion, as per Food and Agriculture Organisation of the United States. Thus demand for connected agriculture is bound to grow in coming years. 

  • There are a number of applications of drone technology convergence with advanced image data analytics that can be utilized in the agriculture industry. Drones fitted with infrared, multispectral and hyperspectral sensors can analyse crop health and soil conditions precisely and accurately. Drones such as the DJI Agras MG-1 (DJI, 2017) are designed for precision variable rate application of liquid pesticides, fertilizers and herbicides.
  • Demand for smart water practices is also a major factor dominating the market. Agriculture accounts for, on average, 70% of all water withdrawals globally, and an even higher share of “consumptive water use” due to the evapotranspiration requirements of crops. More productive and resilient agriculture requires a major shift in the way water, soil, nutrients and other agricultural resources are managed. 
  • However, there is a steep learning curve for farmers, especially in countries where literacy level is low. This is because connected agriculture involves setting up of IoT architecture and sensor networks. Getting farmers thoroughly acquainted with the concept of smart farming, and the tools/devices involved in it, is of the utmost importance. 

Scope of the Report

Agricultural innovation is critical to feeding the world's growing population while reducing the environmental impact of farming. Connected agriculture leads to increasing farm productivity while in the midst of climate change. It also improves the farming practices using network management, agriculture asset management, supervisory control and data acquisition. 

By Component
Solution
Network Management
Agriculture Asset Management
Supervisory Control
Service
By Application
Smart Logistics
Smart Irrigation
Farming Planning and Management
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Smart Irrigation to Dominate the Market

  • As the world population grows, there is an increasing demand for crops, thus highlighting the need for smart irrigation practices. Smart irrigation practices help to decrease the loss of water caused by using the traditional system and control the amount of water flowing into the plants.  
  • Worldwide, over 330 million hectares are equipped for irrigation. Irrigated agriculture represents 20% of the total cultivated land, but contributes 40% of the total food produced worldwide.
  • In order to support clients in moving towards agricultural water stewardship, the World Bank is strengthening its overall approach to water in agriculture.
  • The Bank’s work on water in agriculture is supported by the Water in Agriculture Global Solutions Group (GSG), a membership-based organization which provides services to its members and other stakeholders interested in enhancing how water is used in agriculture in terms of sustainability, productivity, and equity.
water consumption agri

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Asia-Pacific to Witness the Highest Growth

  • There have been latest cases of drones being used in agriculture in APAC region, which stress their popularity. For instance, Indian state of Maharasthra signed a partnership with the World Economic Forum (WEF) Centre for the Fourth Industrial Revolution exploring the use of drones for various governmental services, especially agriculture.
  • The Department of Agriculture (DA) in the Philippines is evaluating the potential of drones in changing how seeds are planted, how fertilizers and pesticides are applied, and how crops are monitored. Moreover, the ministry of Japan set a goal to introduce agricultural drones for more than half of the land area planted with rice, wheat, and soy across Japan by fiscal 2022.
  • Besides, created in partnership with the Inclusive Business Action Network (iBAN), a global initiative focused on scaling up inclusive business models, the Digital Directory serves to make digital solutions more visible to farmers and other agricultural stakeholders in Southeast Asia.
  • All these factors will contribute significant;y to the growth of the market in the region over the forecast period.
connected agri map

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Competitive Landscape

The entry barrier for this market is high due to already existing players who are pioneers in IoT devices. Hence the market is concentrated with few of the companies dominating the market. 

  • December 2018 - IBM partnered with Hello Tractor (on-demand mobile platform providing tractors) to apply several technologies including the Watson Decision Platform for Agriculture, blockchain, the Internet of Things (IoT) and IBM Cloud, to the app.
  • November 2018 - Microsoft teamed up with airborne remote sensing and analytics firm SlantRange to develop powerful and scalable aerial measurement and data solutions for the global agriculture market.  

Major Players

  1. Cisco Systems, Inc.
  2. IBM Corporation
  3. SAP SE
  4. Trimble Navigation Ltd.
  5. Microsoft Corporation

* Complete list of players covered available in the table of contents below

connected agri comp

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Emergence of BYOD (Bring Your Own Drone) in Connected Agriculture

      2. 4.3.2 Upsurge in Demand for Smart Water Management Systems

    4. 4.4 Market Restraints

      1. 4.4.1 Steep Learning Curve Regarding Connected Agriculture

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Component

      1. 5.1.1 Solution

        1. 5.1.1.1 Network Management

        2. 5.1.1.2 Agriculture Asset Management

        3. 5.1.1.3 Supervisory Control

      2. 5.1.2 Service

    2. 5.2 By Application

      1. 5.2.1 Smart Logistics

      2. 5.2.2 Smart Irrigation

      3. 5.2.3 Farming Planning and Management

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Rest of Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Cisco Systems, Inc.

      2. 6.1.2 IBM Corporation

      3. 6.1.3 SAP SE

      4. 6.1.4 Trimble Navigation Ltd.

      5. 6.1.5 Microsoft Corporation

      6. 6.1.6 Vodafone Group PLC

      7. 6.1.7 Accenture PLC

      8. 6.1.8 SWIIM System

      9. 6.1.9 Orange Business Services

      10. 6.1.10 Link Labs LLC

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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